Since 2007, the price of office buildings, shops and other commercial property has fallen by 40pc. This week however, Sir Stelios Haji-Ioannou, the founder of easyJet, was reported to be planning to invest in commercial property, based upon the expectation that prices could turn around soon.
Sir Stelios said: “I am tempted to call the bottom of the property market in London. I don’t own any property in the UK at the moment but now I am looking again at London real estate.” The entrepreneur was reported to be setting up an investment vehicle to buy London office buildings at their depressed market prices.
There are others also keeping an eye on the commercial property market in Britain. A specialist commercial property fund has been set up by Eaton Investment Management, the property fund developer, and LLP Services, and this that will seek to capitalise on the market conditions.
This commercial property fund will only be available to those with significant sums to play with, as the minimum investment is £50,000. There are however, other property investments that are open to those with investment capital.
One of the contributing factors for the renewed interest in commercial property is the fact that the weak pound is making British property much more attractive to buyers from overseas. It is hoped that this demand may help to stop the falling prices and turn the market around.
Another reason why investors are looking at property again is because of the rock bottom interest rates. Commercial property funds are currently yielding about 7pc to 8pc, while those who have directly invested in bricks and mortar though buy-to-let are typically receiving yields of 4.9pc for flats and 4.8pc for houses, according to the Association of Residential Letting Agents (Arla).
While certain analysts see these factors as a sign of improvement to the housing market. Many remain concerned that the recession will prevent any swift turnaround.
In the commercial property market, not all are as confident as Sir Stelios in the belief that prices will bottom out. Malcolm Naish, the head of property at Scottish Widows Investment Partnership, suggests that prices in the commercial sector will fall by a further 10pc before turning around.
Watch the video related to property investment
Corey Edwards, broker/owner once envisioned a team of realtors that would help service the homebuyers and investors seeking home ownership in the Metro Detroit Area. Visit edwardsredorealty.com for more…
Help answer the question about property investment
Is it possible to purchase investment property with no money down?I have recently moved and was a victum to an adj rate mortgage. Now I am renting for the first time in 14 yrs. My family has agreed to purchase a home for myself with it in their name. We have been checking and for them to purchase the home it is %20 down on investment property? There credit is about 695 so a loan is real possible. We are wanting a way to purchase an $80,000 with minumun money down if possible.
yes i think they are overstaying just to get amnesty. and yes tom tancredo is great, he has my vote. he promises to clean house.
i also have a misdemeanor. Hit and run w property damage but they only gave me 1 yr probation to maintain good record which it was easy for me to do because all my life i had clean record. I dont even have parking tickets. Anyways, I just got enrolled in a school. I'm taking Respiratory therapy. Its not as strict as nursing. I called the state board to ask if I can obtain a state license eventhough i have a misdemeanor and they told me yes. It will take awhile to get my exam date because they have to verify my record and get an explanation from the court. They said as long as theres no person, drugs, robbery, criminal charges involved I should be fine. But I have to finish my probation, any obligation to the court and fees/fine before I can take my state exam. Eventhough I will expunge my record they will still see it because state licensing is strict and they do extensive background check up but as for applying a job, once i expunge it they wont be able to see it…
You should try Respiratory therapy or Radiology technology because I called the state licensing place and I got a thumbs up.
Goodluck…
well i do believe tomorrow you should hit the bricks and go to every construction site and talk to the foreman and see if you can get on as labourer — the money would be ok and put food on the table and the hard work would get you mind and body into shape to face the real world!!!